The widow of an Indian-American who committed suicide in 2016, a week after being indicted for insider trading, is faced with a lawsuit asking her to cough up $105 million her husband earned at the firm.
News reports said the hedge fund allegedly swindled by Sanjay Valvani is suing to get the $105 million he earned at the firm back from his widow.
His big-bucks earnings for Visium Asset Management during the decade he was employed at the $8 billion hedge fund made Valvani, 44, the “health-care industry star on Wall Street,” the company said in its Manhattan Supreme Court lawsuit, according to a report in the New York Post.
Valvani was indicted along with two others for using non-public information on drug applications allegedly to game the stock market.
The 44-year Duke University grad had “appeared to generate legitimate substantial positive returns” for the firm and its funds. Indeed, he emerged as one of Wall Street’s leading portfolio managers in the pharmaceutical sector, the report noted.
He pleaded not guilty to the $32 million scheme but just days later was found with his throat slashed on the kitchen floor of his Brooklyn Heights home, where he lived with his family.
By all appearances, Valvani was a health-care industry star on Wall Street,” according to court papers quoted in the Post report.
It said flush with cash — Valvani earned more than $30 million in a single year — the father of two endowed $250,000 scholarships at his alma mater and a 6,000-square-foot Brooklyn Heights townhouse, along with a six-bedroom home in the Hamptons.
According to the Post report, VA Management said in its court filing that Valvani’s wife and children aren’t entitled to keep his cash. “It would be fundamentally unfair for Valvani’s past illegal activity . . . to be permitted to perpetuate a super-luxurious lifestyle for his spouse,” it said in court papers.
The firm is represented by attorney Irving Picard, who led the effort to claw back funds lost in Bernie Madoff’s Ponzi scheme.
Even if VA Management wins its case, the Valvani family will be provided for by a $10 million insurance trust, the company said.
The report said Valvani’s widow, Harjot Sandhu, could not be reached, adding that she sold the Brooklyn townhouse last month for $9.8 million.